No Service Tax on Online Train Tickets

Service taxes to be scrapped on online railways bookings from November 23 to December 31

Booking railway tickets online has become cheaper, at least for a few weeks, as the government looks for new ways to contain the aftermath of demonetisation. According to a recent statement issued by a senior Railways official, service charges on online train bookings via IRCTC (irctc.co.in) will be suspended from November 23 to December 31, 2016. This move ostensibly encourages cashless transactions, but in real terms, may be a way to shore up a fall in revenues for the Railways due to the cash crunch. Earlier service taxes were Rs20 and Rs40 for sleeper class and AC bookings respectively.

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